25 Aug

DXY Cycle Impulse To Drop Prices?

August 25, 2021

By Orbex

In the long term, DXY seems to be forming a bearish impulse, which consists of five cycle sub-waves. The chart shows the final part of the deep correction wave IV, which has ended.

The correction wave IV took the form of a primary triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag. The final wave Ⓩ also has the structure of a triple zigzag, where waves (W)-(Y)-(Z) are double zigzags.

In the near future, cycle wave V will lead the market in the direction of 89.53, with the primary intervening wave Ⓧ.

DXY

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The alternative scenario suggests the continuation of the development of the cycle correction wave IV. Perhaps wave IV is a large double Ⓦ- Ⓧ-Ⓨ zigzag of the primary degree.

The primary wave Ⓨ, which is similar to the triple zigzag (W)-(X)-(Y)-(X)-(Z), is currently under development. Most likely, the first four parts of this figure have already been completed, and the last sub-wave (Z) is still being built.

To complete the intermediate wave (Z), a minor wave Z is necessary. This can take the form of a minute standard zigzag, as shown in the chart. The end of the Z wave is likely near 94.72.

At that level, primary wave Ⓨ will be at the 123.6% Fibonacci extension of wave Ⓦ.

By Orbex


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